Discounted Cash Flow (DCF) Analysis Levered
Verizon Communications Inc. (VZ)
$37.31
-0.43 (-1.14%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 130,863 | 131,868 | 128,292 | 133,613 | 136,835 | 138,413.80 | 140,010.81 | 141,626.25 | 143,260.33 | 144,913.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 34,339 | 35,746 | 41,768 | 39,539 | 37,141 | 39,486.66 | 39,942.26 | 40,403.11 | 40,869.28 | 41,340.83 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -18,087 | -18,837 | -20,318 | -67,882 | -26,740 | -31,638.65 | -32,003.70 | -32,372.96 | -32,746.47 | -33,124.30 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 16,252 | 16,909 | 21,450 | -28,343 | 10,401 | 7,848.01 | 7,938.56 | 8,030.15 | 8,122.81 | 8,216.53 |
Weighted Average Cost Of Capital
| Share price | $ 37.31 |
|---|---|
| Beta | 0.335 |
| Diluted Shares Outstanding | 4,150 |
| Cost of Debt | |
| Tax Rate | 24.81 |
| After-tax Cost of Debt | 1.54% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.083 |
| Total Debt | 176,331 |
| Total Equity | 154,836.50 |
| Total Capital | 331,167.50 |
| Debt Weighting | 53.25 |
| Equity Weighting | 46.75 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 130,863 | 131,868 | 128,292 | 133,613 | 136,835 | 138,413.80 | 140,010.81 | 141,626.25 | 143,260.33 | 144,913.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 34,339 | 35,746 | 41,768 | 39,539 | 37,141 | 39,486.66 | 39,942.26 | 40,403.11 | 40,869.28 | 41,340.83 |
| Capital Expenditure | -18,087 | -18,837 | -20,318 | -67,882 | -26,740 | -31,638.65 | -32,003.70 | -32,372.96 | -32,746.47 | -33,124.30 |
| Free Cash Flow | 16,252 | 16,909 | 21,450 | -28,343 | 10,401 | 7,848.01 | 7,938.56 | 8,030.15 | 8,122.81 | 8,216.53 |
| WACC | ||||||||||
| PV LFCF | 7,604.66 | 7,453.88 | 7,306.09 | 7,161.22 | 7,019.23 | |||||
| SUM PV LFCF | 36,545.08 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.20 |
| Free cash flow (t + 1) | 8,380.86 |
| Terminal Value | 698,404.68 |
| Present Value of Terminal Value | 596,634.90 |
Intrinsic Value
| Enterprise Value | 633,179.98 |
|---|---|
| Net Debt | 173,726 |
| Equity Value | 459,453.98 |
| Shares Outstanding | 4,150 |
| Equity Value Per Share | 110.71 |